LLOYDS BANKING GROUP ANNOUNCES A PROPOSED 1.34 FOR 1 RIGHTS ISSUE OF 36,505,088,579 NEW SHARES AT AN ISSUE PRICE OF 37 PENCE PER NEW SHARE


RNS Number : 9740C
Lloyds Banking Group PLC
24 November 2009
 







112/09    24 November 2009

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, HONG KONG, ISRAEL, JAPAN,
THAILAND OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE
RELEVANT LAWS OF SUCH JURISDICTION. 




LLOYDS BANKING GROUP ANNOUNCES A PROPOSED 1.34 FOR 1 RIGHTS ISSUE OF
36,505,088,579 NEW SHARES AT AN ISSUE PRICE OF 37 PENCE PER NEW SHARE 




Unless otherwise defined in this announcement, capitalised definitions shall
have the same meaning as in the rights issue prospectus (the "Prospectus")
published on 3 November 2009 by Lloyds Banking Group plc (the "Company" or
"Lloyds Banking Group") in connection with the Rights Issue. 




Lloyds Banking Group is pleased to announce that the Issue Price at which the
New Shares will be offered pursuant to the Rights Issue has been set at 37
pence per New Share. 




The Rights Issue comprises the offer of 36,505,088,579 New Shares at an Issue
Price of 37 pence on the basis of 1.34 New Shares for every 1 Existing Ordinary
Share held at the Record Date. The expected gross proceeds of the Rights Issue
receivable by Lloyds Banking Group total £13,506,882,774. 




The Issue Price represents a discount of 59.5 per cent. to the Closing Price of
the Company's Ordinary Shares on 23 November 2009 (being the latest practicable
date prior to the publication of this announcement) and a discount of 38.6 per
cent. to the theoretical ex-rights price based on this Closing Price. 




The New Shares will represent 57.3 per cent. of the enlarged share capital of
Lloyds Banking Group immediately following completion of the Rights Issue and
Share Subdivision. 




 
 

RIGHTS ISSUE STATISTICS

 

Issue Price per New Share
 37 pence
 
Discount of Issue Price to the Closing Price on 23 November 2009 (being the
last practicable date before the publication of this announcement) 
 59.5 per cent.
 
Discount of Issue Price to theoretical ex-rights price based on the Closing
Price on 23 November 2009 
 38.6 per cent.
 
Basis of Rights Issue
 1.34 New Shares for every 1 Existing Ordinary Share
 
Number of Ordinary Shares in issue as at the date of this announcement
 27,161,682,366
 
Number of Ordinary Shares to be issued by Lloyds Banking Group pursuant to the
Rights Issue 
 36,505,088,579
 
New Shares as a percentage of Actual Enlarged Share Capital of Lloyds Banking
Group immediately following completion of the Rights Issue(1) and Share
Subdivision 
 57.3 per cent.
 
Expected gross proceeds of the Rights Issue receivable by Lloyds Banking Group
 £13,506,882,774
 




(1) On the assumption that no further Ordinary Shares are issued as a result of
the exercise of any options under any Lloyds Banking Group Employee Share Plans
between the date of this announcement and the closing of the Rights Issue. 

 

EXPECTED TIMETABLE OF PRINCIPAL EVENTS


 
Record Date for entitlement under the Rights Issue for Qualifying CREST
Shareholders and Qualifying Non-CREST Shareholders and for holders of Limited
Voting Shares for the LVS Capitalisation Issue 
 Close of business on 20 November 2009
 
Announcement of Issue Price and entitlements of Qualifying Shareholders
 7.00 a.m. on    24 November 2009
 
Latest time and date for receipt of Forms of Proxy for the General Meeting
 11.00 a.m. on  24 November 2009
 
General Meeting
 11.00 a.m. on    26 November 2009
 
LVS Record Date for entitlement under the Rights Issue for Qualifying LV
Shareholders 
 4.30 p.m. on    26 November 2009
 
Share Subdivision becomes effective
 Close of business on 26 November 2009
 
Despatch of Provisional Allotment Letters (to Qualifying Non-CREST Shareholders
only) 
 26 November 2009
 
Start of subscription period
 26 November 2009
 
Admission
 8.00 a.m. on    27 November 2009
 
Dealings in New Shares, nil paid, commence on the London Stock Exchange
 8.00 a.m. on    27 November 2009
 
Existing Ordinary Shares marked "ex-rights" by the London Stock Exchange
 8.00 a.m. on    27 November 2009
 
Nil Paid Rights credited to stock accounts in CREST (Qualifying CREST
Shareholders only) 
 8.00 a.m. on    27 November 2009
 
Nil Paid Rights and Fully Paid Rights enabled in CREST
 8.00 a.m. on    27 November 2009
 
Recommended latest time for requesting withdrawal of Nil Paid Rights and Fully
Paid Rights from CREST (i.e. if your Nil Paid Rights and Fully Paid Rights are
in CREST and you wish to convert them to certificated form) 
 3.00 p.m. on    4 December 2009
 
Latest time for depositing renounced Provisional Allotment Letters, nil or
fully paid, into CREST or for dematerialising Nil Paid Rights or Fully Paid
Rights into a CREST stock account (i.e. if your Nil Paid Rights and Fully Paid
Rights are represented by a Provisional Allotment Letter and you wish to
convert them to uncertificated form) 
 3.00 p.m. on    8 December 2009
 
Latest time and date for splitting Provisional Allotment Letters, nil or fully
paid 
 3.00 p.m. on    9 December 2009
 
Latest time and date for acceptance, payment in full and registration or
renunciation of Provisional Allotment Letters 
 11.00 a.m. on    11 December 2009
 
Dealings in New Shares, fully paid, commence on the London Stock Exchange
 8.00 a.m. on    14 December 2009
 
New Shares credited to CREST accounts
 by 14 December 2009
 
Despatch of definitive share certificates for the New Shares in certificated
form 
 by 29 December 2009
 


 

 




This announcement is an advertisement and not a prospectus or a pricing
statement and investors should not subscribe for or purchase any transferable
securities referred to in this announcement except on the basis of the
information in the Prospectus and the pricing statement expected to be issued
by the Company today (the "Pricing Statement") in connection with the admission
of its ordinary shares to the Official List of the Financial Services Authority
and to trading on London Stock Exchange plc's main market for listed
securities. No person has been authorised to give any information or make any
representations other than those contained in the Prospectus and the Pricing
Statement and, if given or made, such information or representations must not
be relied upon as having been authorised by Lloyds Banking Group, the
Directors, the Banks, the Co-Bookrunner, the Senior Co-Lead Managers or the
Co-Lead Managers. Copies of the Prospectus are available for inspection during
usual business hours on any weekday (Saturdays, Sundays, and public holidays
excepted) up to 27 November 2009 at the registered office of the Company at
Henry Duncan House, 120 George Street, Edinburgh EH2 4LH and at the offices of
Linklaters LLP, One Silk Street, London EC2Y 8HQ, and on Lloyds Banking Group's
website (www.lloydsbankinggroup.com). The Pricing Statement is available for
viewing on Lloyds Banking Group's website (www.lloydsbankinggroup.com). 




This announcement does not constitute or form a part of any offer or
solicitation to purchase or subscribe for securities in the United States. The
Nil Paid Rights, Fully Paid Rights and New Shares have not been and will not be
registered under the Securities Act or under any securities laws of any state
or other jurisdiction of the United States and may not be offered, sold,
resold, transferred or delivered, directly or indirectly, within the United
States except pursuant to an applicable exemption from the registration
requirements of the Securities Act and in compliance with any applicable
securities laws of any state or other jurisdiction of the United States. There
will be no public offer of the Nil Paid Rights, Fully Paid Rights and New
Shares in the United States. Neither the SEC nor any other US federal or state
securities commission or regulatory authority has approved or disapproved the
Nil Paid Rights, Fully Paid Rights and New Shares or passed an opinion on the
adequacy of this announcement, the Prospectus, the Pricing Statement or the
Provisional Allotment Letters. Any representation to the contrary is a criminal
offence in the United States. Shareholders or holders of Lloyds Banking Group
ADSs who are or become affiliates (within the meaning of the Securities Act) of
Lloyds Banking Group will be subject to restrictions on the resale of the New
Shares in the United States. 




The securities mentioned herein and in the Prospectus may not be offered, sold,
resold, transferred or delivered, directly or indirectly, in any Restricted
Jurisdiction absent registration or an applicable exemption from the
registration requirements of the relevant laws of any Restricted Jurisdiction.
There will be no public offer of such securities in any Restricted
Jurisdiction. This announcement does not constitute an offer to sell, or a
solicitation of an offer to subscribe for, the securities being issued in any
jurisdiction in which such offer or solicitation is unlawful. 




The contents of Lloyds Banking Group's website do not form part of the
Prospectus, the Pricing Statement or this announcement. 




The contents of this announcement are not to be construed as legal, financial,
business or tax advice. Each prospective investor should consult its own legal
adviser, financial adviser or tax adviser for legal, financial or tax advice. 




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For further information:




Investor Relations

Michael Oliver                                                          +44 (0)
20 7356 2167 
Director of Investor Relations
Email: michael.oliver@ltsb-finance.co.uk




Douglas Radcliffe                                                    +44 (0) 20
7356 1571 
Senior Manager, Investor Relations
Email: douglas.radcliffe@ltsb-finance.co.uk




Media Relations




Sara Evans                                                              +44 (0)
20 7356 2075 
Media Relations Manager
Email: sara.evans2@lloydstsb.co.uk


This information is provided by RNS
The company news service from the London Stock Exchange
 
END